Civics Test 2.1

Question 1

What is supply?

Answer 1

The willingness and ability of producers to offer goods and services

Question 2

What is demand?

Answer 2

The ability to but a food or service and ability to pay for it

Question 3

What is total revenue?

Answer 3

Company’s income from selling its products

Question 4

What is demand curve?

Answer 4

Graphics that display data from demand schedule

Question 5

What is supply curve?

Answer 5

Graphics that display data from supply schedule

Question 6

What is demand schedule?

Answer 6

List of how much of an item and individual is willing to purchase at every price

Question 7

What is supply schedule?

Answer 7

List of how much an item and individual is willing me to purchase at every price

Question 8

What is law of supply?

Answer 8

Price decreases, supply decreases, vise versa

Question 9

What is law of demand?

Answer 9

Price increase, demand decreases and price decreases, then demand increases

Question 10

What is price flour?

Answer 10

Legal minimum price for a good or service

Question 11

What is price ceiling?

Answer 11

Legal max price for a good or service

Question 12

What is substitutes?

Answer 12

Products used in place of other products to satisfy needs of wants

Question 13

What are complements?

Answer 13

Products used together

Question 14

What is marginal cost?

Answer 14

Extra cost of producing one more unit

Question 15

What is marginal product?

Answer 15

Change in total output brought about by adding one more worker

Question 16

What are fixed cost?

Answer 16

Cost that happen no matter what

Question 17

What are variable cost?

Answer 17

Cost dependent upon the level of production output

Question 18

What is total profit?

Answer 18

Profit you earn

Question 19

What is regulation?

Answer 19

A rule or directive made and maintained by an authority

Question 20

What is surplus?

Answer 20

Results when the quality supplies is greater than the quantity demanded

Question 21

What is shortage?

Answer 21

When the quantity demanded is greater than the quantity supplied

Question 22

What is equilibrium price?

Answer 22

The price at which the individual quantity demand and individual

Question 23

How is total revenue calculated?

Answer 23

Price x output

Question 24

What factors affect demand?

Answer 24

Willingness to pay, ability to pay, market size, customer taste, customer expectations

Question 25

What factors affect supply?

Answer 25

Input cost, labor productivity, technology, govt. actions, producer expectations, number of producers

Question 26

How do business owners decide the right number of workers?

Answer 26

Marginal product increasing and decreasing returns

Question 27

How does a business calculate total profit?

Answer 27

Revenue-cost

Question 28

What motivates producers to increase supply?

Answer 28

Bigger market/more consumers

Question 29

What do lower prices encourage?

Answer 29

More supply

Question 30

What does a surplus indicate?

Answer 30

There is more quantity supplied than quantity demanded

Question 31

What does a shortage indicate?

Answer 31

There is more quantity supplied than quantity demanded

Question 32

When customers demand more goods and services at every price, what will happen to th equilibrium?

Answer 32

It shifts?